There has been an amazing growth of entrepreneurship in the Netherlands in the period 1987-2012. One the one hand this is a miracle: there is no European country in which the Total Entrepreneurial Activity rate has grown as much as in the Netherlands over the period 2003-2012. On the other hand there is a paradox: this growth is increasingly a matter of growing numbers of solo self-employed, with only low/mediocre rates of growth-oriented entrepreneurship.

1. Entrepreneurial_Ecosystem.NL
Miracle and Paradox
Prof Dr Erik Stam
Utrecht University School of Economics &
Utrecht Center for Entrepreneurship
“ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP”
International Workshop jointly organised by the OECD LEED Programme and
The Netherlands’ Ministry of Economic Affairs

2. Entrepreneurial_Ecosystem.NL
Oh no, not the next Silicon Somewhere…

3. Entrepreneurial_Ecosystem
Reflects two shifts:
Societal: from Managed Economy to
Entrepreneurial Economy (Thurik, Stam &
Audretsch 2013)
Scientific: from Equilibrium Economics to
Complexity Economics (Beinhocker 2007)

4. NL: Entrepreneurship Miracle or Paradox?
• Amazing growth of entrepreneurship in the
Netherlands, 1987-2012
• Miracle: no country in which the TEA rate has
grown as much as in the Netherlands over the
period 2003-2012 (and precourse of rising new
firm formation and self-employment)
• Paradox: increasingly a matter of growing
number of solo self-employed, and low/mediocre
rates of growth-oriented entrepreneurship

5. Entrepreneurship NL Facts - I

6. Entrepreneurship Facts - II
TEA Rate 2003-2012 (GEM)

7. Paraphrasing Einstein
• Not all entrepreneurship that counts can be
counted, and not all entrepreneurship that can be
counted counts.
• Entrepreneurship:
explore and
exploit opportunities
for new value creation

8. Entrepreneurship Facts - III

9. Entrepreneurship Facts - IV

10. Entrepreneurship Facts - V

11. (Eco)systemic Causes & Consequences
• Positive feedback: virtuous circle (for self-employment!)
Changing
preferences
Changing
formal
institutions
Higher
entry
rates
Lower
entry
barriers
+ Context:
high labour protection,
concentrated financial sector,
+ Shocks:
1997-2001 dot.com boom&bust
2008+ financial crisis

12. (Eco)systemic Causes & Consequences
• Negative/no feedback
– No build up of system for high-growth start-ups (vicious
circle high-growth start-up scandals early 2000s: Baan, World Online)
a) Mobility of skilled labour: employment protection
legislation, non compete clauses
b) Capital market: VC, trade-sales, IPO
c) Lack of venturesome demand: innovative procurement
d) a)+b): Lack of serial entrepreneurs/informal investors
– No champion of intrapreneurship, like Scandinavian
countries (in spite of high levels of trust, knowledge
work, and decentralized decision making)

13. Is Entrepreneurial_Ecosystem.NL successful?

14. Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates
- >175.000 self-employed below poverty line…
(CBS)

16. Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates
- >175.000 self-employed below poverty line…
(CBS)
- No increase in innovativeness SME sector

17. Entrepreneurial_Ecosystem.NL
• One entrepreneurial ecosystem, or many (selfempl, high-growth start-ups, intrapreneurship)?
• One national ecosystem, or many (reg, sect, corp)?
– Regional ecosystems: e.g. Amsterdam, Eindhoven
area, Utrecht, Twente, …
– ‘Sectoral’ ecosystems: e.g. gaming, biotech, (construction?)
– Corporate ecosystems: intrapreneurship
• Systemic causes
– Institutions -> resources (capital, labour) for value creation
• Success? Successful? +/-/-

18. What’s next?
• Transition from an EE focused on selfemployment,
• To EE that facilitates high-impact new value
creation:
– High growth start-ups
– Intrapreneurship
– Coalitions of self-employed and other
organizations

19. How?
• Education: stimulate ambition and
entrepreneurship (preferences, skills)
• Facilitate / incentivize capital & labour
towards high-impact opportunities

20. Entrepreneurial_Ecosystem.NL
Miracle and Paradox
Prof Dr Erik Stam
Utrecht University School of Economics &
Utrecht Center for Entrepreneurship
“ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP”
International Workshop jointly organised by the OECD LEED Programme and
The Netherlands’ Ministry of Economic Affairs